FARs - Frequently Asserted Rumors

Rumors are a natural consequence of promoting change. Some people can't help but speculate about other people's motives or intentions regardless of whether any facts actually support such speculations. Although it's generally not worth the effort to respond to rumors, important information can sometimes be distributed that may not be readily available otherwise. With that in mind, we hope you discover something you didn't already know in these responses.

RUMOR 1: The Property Owners Association (POA) Board of Directors has a secret agenda and is trying to get rich at the expense of the other Property Owners.

STATUS:False. The last three boards have spent thousands of hours and thousands of dollars of their own money to bring the airport to the threshold of governing itself and to give every Property Owner a voice in the airport’s priorities and future. This proposal allows us to fund a new runway and create a sustainable, healthy aviation community, a community we can all enjoy. The more cynical among us have difficulty understanding why a group of people would spend so much time and their own money to take on this daunting task. The answer is simple: We have investments to protect and someone has to do it. People with the desire and means to get it done have stepped up!

RUMOR 2: This proposal gives the Board a blank check.

STATUS: False. The Board has no authority to force Members to pay for unapproved expenditures of any kind. Section B, ¶ 10 of the integrated deed restrictions (“IDRs”) strictly limits the Board's authority to spend Association funds generated from assessments. First, the Property Owners must approve the annual fee (or "assessment") by majority vote each year. ("Fee" and "assessment" are interchangeable and have the same meaning as used in these documents.) The only possible source for the annual fee is the Board’s recommended budget. Although the word “budget” does not appear anywhere in the deed restrictions or bylaws, the Property Owners would have nothing to approve if the Board did not recommend a budget. No budget, no assessment. Second, that same section and paragraph requires the Board to use all funds collected for maintenance, insurance, accounting and other professional services, as well as other costs reasonably related to the proper care and maintenance of the common areas and the administration and enforcement of the deed restrictions. The Board’s recommended budget cannot contain anything not on this list. The Property Owners cannot approve anything not on this list.

Despite this strict limit on the Board’s authority to spend assessed funds, some people worry that the Articles of Incorporation, the document that states the purposes for which the Association was organized, give the Association the authority "to acquire and maintain property and facilities” for the benefit of those served by the Association. They worry that the Board can impose a Special Assessment to force Property Owners to take on debt by acquiring property or facilities that the Property Owners did not approve. In reality, the Board has no such authority because acquiring property and facilities is not on the list of items that could appear on the Board’s budget or be the basis for a Special Assessment. The Property Owners could not approve such expenditures even if any of those items did appear on the budget. Using assessed funds to acquire property (or anything else not on the list), whether through the annual budget process or a Special Assessment, is not possible without violating Section B, ¶ 10 of the IDRs.

Acquiring property and facilities for the benefit of those served by the Association has been the number one purpose for which the Association was organized since 1985. Although the Association has never acquired property in its entire history, it is possible that the Association might want to at some time. So how could the Association acquire property if it can’t use assessed funds? The Association could acquire property by donation, bequest, or from funds generated outside the assessment process. There are any number of ways to generate revenue other than through assessments, e.g., concessions, hosting events, auctions, or some other type of fundraiser.

In summary, Property owners can approve an annual assessment (or fee) only if the Board recommends a budget. The only items that can appear on the budget are those authorized under Section B, ¶ 10 of the IDRs. Neither the Board nor the Property Owners can approve an assessment that includes items beyond the scope of Section B, ¶ 10. Property acquisition is not on that list but is just one example. The Board has no authority to force Members to pay for unapproved expenditures of any kind.

RUMOR 3: The Board can set the geographical boundaries of the POA.

STATUS: True. As in any property owners association, the right to establish the Association’s geographic boundaries is a fundamental right. Whether the Board needs to exercise that right depends on any number of possible circumstances. That right does, however, give the Property Owners an effective and efficient means of protecting against the overuse or misuse of common areas. This is a characteristic of all such associations and has been a part of ours since its inception in 1985. Because the airport is not currently near its capacity, it is in the best interests of all property owners to encourage the development of airport property. Doing so, among other benefits, distributes maintenance costs among more people and thus reduces the cost per property owner. The current Board has NO plan regarding changing or limiting the airport’s boundaries. Future Boards also have a fiduciary duty to act in the best interests of all Property Owners. If someone wants to propose adding property to the airport, the questions would be: What is the overall impact of this proposal? What demands does it put on our infrastructure? How will it affect our community? Is this a good deal and is this what we want? The Board would make a recommendation and the Property Owners would vote to approve or disapprove. And that’s exactly as it should be!

RUMOR 4: We will be stuck with the amended Bylaws as they are currently written and have no ability to make improvements or changes.

STATUS: False. The current Board is relying on the amendment procedures of the existing deed restrictions and bylaws to determine whether a majority of Property Owners support this proposal. Special meetings may be called at any time by a majority of the directors or the President, and must be called by the President upon written request of ten (10) percent or more of the members. A quorum of 20% can amend the Bylaws with a simple majority. The Property Owners control their destiny, needs, and priorities—just as it should be.

RUMOR 5: The Board is advising people to stop paying their Runway Access License fee.

STATUS: False: The Board suggests that you look at any contract carefully to determine if all parties have fulfilled their obligations. You may also want to determine whether you needed a Runway Access License in the first place. Once the property owners amend the Hyde-Way deed restrictions as proposed, the provisions creating a runway access license will no longer exist. The Board encourages all property owners to seek the guidance of a competent Texas attorney if you have any questions about your Runway Access License.

RUMOR 6: All the official documents keep changing and owners are not signing the same versions or a valid document.

STATUS: False: The Board accepted comments and ideas until March 31, 2016. The final versions were locked on April 9, 2016 before voting began. The documents people voted on and those posted on the website have not changed and cannot change until voting is complete.

RUMOR 7: This proposal gives the Board the authority to lien and foreclose on property.

STATUS: False. The Board has no such authority. If a property owner chooses not to pay an assessment, a standard collection process will begin that might look like this: Initial assessment unpaid for more than 30 days, send out a second invoice. If not paid after 60 days, send another invoice along with a letter with a request for payment and a brief description of the collection process. If not paid after 90 days, invoice turned over to attorney for collection. The property owner may then receive a demand letter from the law firm. If the property owner still does not pay, then a lawsuit may follow. If the court determines that the assessment is legitimate and has not been paid, the court will issue a judgment. The judgment allows for post-judgment discovery to determine a debtor's assets. If you have further questions about the collection process, please ask a Texas attorney to advise you. It is generally to the debtor's overwhelming advantage to pay the debt before an attorney gets involved.

RUMOR 8: The Board wants to throw out all non-aviation related businesses.

STATUS: False. The Board has no such authority or desire. One of the Association's primary duties is to ensure safe airport operations. ​The Board fulfills this duty by removing or preventing anything from obstructing the safe access to the taxiways and runway. The Board shares this duty with all property owners. As our experiences with the gym patrons demonstrate, mixing airplanes and cars driven by people who have no clue about airport operations or airplanes is a very bad idea. See IDR section B, paragraph 2 and section D, paragraph 1.

Having access to an airport and airplanes could easily generate substantial business for everyone. There is no downside to promoting a diversified and healthy economic environment. However, if we do a good job cleaning up this airport, we will likely see an increase in all kinds of business activities, especially those which are aviation related. Any Board's goal should be to cultivate conditions that will attract desirable economic activity. If we create an environment that creates value for aviation oriented activities, then we will see an increase in aviation oriented businesses.

Please feel free to ask any question or express any concern by emailing or calling anyone on the Board of Directors. You will find our email addresses and phone numbers on the Web site: www.fly52f.org